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Washington Hospital and Fremont Bank, financial ties

By Matt Artz
Sunday, November 2nd, 2008 at 9:36 am in Uncategorized.

I also followed up with Washington about how much money they have with Fremont Bank, after two bank executives started a committee that has raised money to re-elect the two board incumbents.

Here’s what hospital spokesman Chris Brown had to say:

As I stated previously, there are no bond funds at Fremont Bank; these are all held at Union Bank. We have several operating accounts at Fremont Bank, which represent 2.8% of our cash and investments as reflected in our recently audited financial statements (I have attached a copy to this e-mail). These are the type of funds that are used for daily operations, such as payroll and accounts payable and fluctuate on a daily basis.  Fremont Bank acts also as a custodian of a portion of the Hospital’s investments, which represents 40.1% of the Hospital’s investment portfolio. Fremont Bank has no influence or decision-making regarding these investments and derives no income from them other than a standard custodial fee. Our investment managers are from two organizations called Payden and Rygel and Wellington Management.  We have no loans with Fremont Bank. We also have banking relationships with Union Bank, Wells Fargo Bank and the Local Agency Investment Fund.

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  • Arthur Sheppard

    Fremont Bank and Washington hospital

    Funds used for daily operations such as payroll and accounts payable represent floating money. The bank doesn’t pay interest on this money.
    It may represent only 2.8 % of cash at any time but over period of time it accounts for substantial amount of money. Bank does not pay interest on these accounts and earns interest. Please note that Washington hospital is the biggest employer in Tricity area

    Fremont bank holds 40% of investment portfolio of the hospital, “ It pays standard custodian fee” according to spokesperson. How much is this standard amount to in dollar terms? Vanguard and Fidelity fund family’s charge 0.01%. How much does Fremont bank charge?
    The public is entitled to know how much these percentages are in real dollar amounts
    It is clear that Wallace( Fremont Bank executive) needs to sever financial relations with the hospital or failing which he has to resign as Trustee of the board.